- NSE shares debut on Dalal Street on September 24 with Macquarie coverage
- Macquarie rates NSE 'Outperform' with a target price of Rs 1,965 per share
- NSE expected to grow revenue at 12% CAGR from FY26 to FY30, driven by new products
The equity shares of the National Stock Exchange of India (NSE) are set to make their debut on Dalal Street on Thursday, September 24, with global brokerage Macquarie initiating coverage on the stock with an ‘Outperform' rating and a target price of Rs 1,965 per share.
The target price implies an upside of around 10% from NSE's IPO issue price of Rs 1,785 per share.
Macquarie described NSE as “The Dominator”, citing its leading market share, deep liquidity, technology capabilities and entrenched network effects.
According to the brokerage, NSE's full suite of services and technology stack make it a key part of India's financialisation. It expects the exchange to deliver a 12% revenue CAGR between FY26 and FY30, driven by non-transaction revenues and new products. This is expected to partly offset modest market share losses in cash equities and futures and options.
Macquarie expects NSE to maintain resilient margins in the mid-70% range, supported by its scale and operating leverage.
However, the brokerage flagged near-term pressure from the recently implemented Closing Auction Session (CAS), which it believes is weighing on trading activity as investors adapt to the new framework. It expects some pressure on cash equity, derivatives and margin trading facility volumes in the near term.
On valuations, Macquarie noted that NSE trades at a premium to international exchanges, at around 30 times FY29 estimated earnings versus 18 times for global peers. However, the brokerage said NSE delivers around 60% higher growth and returns, supported by India's structural financialisation.
Macquarie values NSE at 32.5 times FY29 estimated P/E, arriving a target price of Rs 1,965 apiece. It identified CAS resolution, growth in monthly options volumes and increased market activity from larger IPOs as key catalysts.
The brokerage also sees potential for further re-rating if NSE's new products gain stronger traction.
ALSO READ: NSE IPO Listing Live: GMP Signals Modest Gains; Track Listing Price, Share Movement And More
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.